INDUSTRY EXAMPLES (LEC 1, 2, 3 & 4) Flashcards
Give an example of an industry that uses strategic planning, tactical planning and operational planning
Strategic Planning: car company wants to increase market share by 20% so they plan on developing new models
Tactical Planning: They analyze the resources needed to develop the new models
Operational Planning: involves scheduling production run, allocating resources and workers
Give an industry example of how to measure performance in operations
Hospitals measure performance based on patient satisfaction, quality of care, and operational excellence
They collect data through surveys and track clinical rates such as readmission rates
They track operational metrics like length of stay and resource utilization
Hospitals analyze this data to identify performance gaps and implement strategies to improve performance
How does Zara ensure a speedy supply chain that caters to new trends?
In-house production: factories are located near the head quarters which gives them control to respond to trends efficiently
Lean inventory management: only produce in small quantity to avoid overstocking (JIT)
Efficient logistics and distribution: their products are shipped twice a week because they use sophisticated algorithms that allows them to identify routes that reduce transportation time and cost
What company uses the Baldrige Performance Excellence Framework?
Boeing uses it to asses their performance in:
1. Leadership
2. Strategic planning
3. Customer focus
4. Work force focus
5. Operation focus
6. Measurement
7. Results
Boeing focused on improving its processes including supply chain management and quality control and has worked to develop a culture for continuous improvement.
As a result, they have improved their delivery times, reduced costs and increased customer satisfaction rates
Give a product example for Order Qualifiers and Order Winners
Smartphones
OQ:
- Ability to make phone calls
- reliable battery life
- access to basic apps
OW:
- higher resolution
- high quality camera
- unique design
OQ are necessary features to be considered
OW are features that give competitive advantage and differentiation
What company/industry has faced supply chain risk?
General Motors (GM)/Automobile industry
Chip shortage created a supply chain risk for the car industry. This is because semiconductors are used in navigation systems and advanced driver assistance systems (ADAS)
This caused a ripple effect in the supply chain causing delays and increased costs
It all started during the COVID pandemic, when semiconductors faced a sudden increase in demand, which was due to the surge in electronic devices that use semiconductors
Pandemic also disrupted the production of semiconductors due to health regulations that caused many factories to shut down their operations
This disruption led to a shortage
Automakers had to reduce production and cut back on inventory as they struggled to secure chips to meet their production goals, which lead to a shortage of new cars and increased prices (demand outstripped supply)
GM announced that they will temporarily shut down several factories due to the shortage, which affected the production of popular car models. They estimated that this would reduce their earning for up to $2 billion
To address this issue, GM has been working with suppliers to increase chip production and re-engineers some cars to use fewer chips
What company implement Lean Manufacturing?
Toyota placed a cord in every station that would allow the workers to stop the entire assembly if they spotted a problem.
The whole team would work on it to prevent it from happening again, resulting in the number of errors to drastically decrease
Combined with a culture of continues improvement, called Kaisen, Toyota production system built a brand of reliability and and affordance.
They also got good at at producing cars quickly
They combined craft with mass production, avoiding waste of overproduction and product defects, and wasting time and processing, while striving for constant improvement
